Podcast Summary: Optimal Finance Daily – Episode 3364

Title: [Part 2] Financial FOMO: What, Why and How To Avoid It
Host: Diania Merriam
Original Article by: Joel of 5AMJoel
Air Date: November 24, 2025

Episode Overview

This episode continues exploring the concept of financial FOMO (Fear Of Missing Out), focusing on its causes, the negative impact it can have on our financial well-being, and practical strategies to overcome it. Drawing from Joel of 5AMJoel's insights, host Diania Merriam reads and reflects on the blog post, connecting its lessons to everyday money management and mindset.

Key Discussion Points & Insights

1. Problems Created by Financial FOMO

[00:56] Joel identifies four major issues that arise from financial FOMO, using the persona "Steve" as a relatable example:

• Subconsciously Comparing Oneself to Others

  • Steve constantly measures himself against the successes of others (age, wealth, strategies), leading to perpetual dissatisfaction.
  • “Since there's an unlimited amount of richer, smarter and younger people in the world, Steve is setting himself up to feel subpar for the rest of his life.” (Joel, 01:34)

• Analysis Paralysis

  • An overload of financial information can leave someone like Steve frozen and unable to act.
  • “If Steve doesn't pick a specific strategy and take action, he will never get anywhere.” (Joel, 02:14)

• Impulse or Emotional Investing

  • In contrast to inaction, FOMO can also spark rash decisions without proper research—e.g., buying Bitcoin on a whim.
  • “Just buying so that he doesn’t miss out. This is a big financial no, no.” (Joel, 02:41)

• Beware of False Prophets

  • FOMO distorts reality, as people often only showcase wins, not losses, making others feel left behind.
  • “People usually only post their good photos, good stories, and share good times. The bad stuff is hidden, but it doesn't mean it's not there.” (Joel, 03:13)

2. Universal Experience of Missing Out

[03:29]
Joel reassures listeners: everyone misses out on something. Complete control is impossible, but we can control our reactions and paths forward.

3. Antidotes to Financial FOMO

[04:00] Joel offers four practical strategies for overcoming FOMO:

• Appreciation

  • Focus on what you do have. For example, Steve already had $800,000 in low-cost index funds, accumulated through diligence, yet felt dissatisfied.
  • “Steve's frustration and financial FOMO will continue until he starts appreciating what he already has.” (Joel, 04:48)

• JOMO (Joy of Missing Out)

  • Celebrate the things you skip, not just what you achieve. Missing out on certain investments (like rental properties) also means avoiding the headaches they bring.
  • “Instead of feeling bad, you should feel joy. You're missing out on the hundreds of headaches, tenant issues, broken toilets and trash units that landlords have to deal with.” (Joel, 05:09)

• Low Information Diet

  • Reduce exposure to news, financial boasts, and opinions—especially in the morning—to avoid comparison and overwhelm.
  • Joel shares that Steve, the story’s protagonist, was happier after switching morning podcasts for hands-on work experience.
  • “He stopped listening to podcasts in the mornings and instead he spent two hours each day interning... Steve is happier than ever and getting hands-on experience.” (Joel, 05:57)

• Stop Comparing Yourself to Others

  • Especially avoid comparisons with outliers (like Mark Zuckerberg). Everyone’s journey is unique.
  • “It’s never going to be a fair comparison when you study someone else, you're comparing their outsides with your insides.” (Joel, 06:25)
  • Joel concludes: “Enjoy the road you're on or switch to another road if you're truly unhappy. Just don't worry about everyone else's trails… Rest well knowing you'll see everyone at the top.” (Joel, 07:02)

Noteworthy Quotes

• On Comparison:
  “You're comparing their outsides with your insides. The outside appearance of people...will always trump your inside feelings about yourself.” (Joel, 06:34)

• On Mindset:
  “Everyone ends up at the top. Old, wise, wealthy and happy. Enjoy the road you're on or switch if you’re truly unhappy.” (Joel, 07:11)

• Diania’s Reflection:
  “[...] while others can provide great inspiration and give us ideas of what's possible with our money, personal finance is a very personal journey, and it’s a lifelong journey that we can make way more enjoyable by celebrating every win, big or small.” (Diania, 09:15)

Host Commentary & Final Thoughts

[09:02]
Diania Merriam reflects on the reminder not to compare ourselves to others, noting the dangers of assuming wealth equates to happiness. She emphasizes that real happiness comes from how we spend our time and energy, not just financial achievements:

• “You can never know another person's inner life, and many people surrounded by luxury or financial success are deeply unhappy. While you can't buy real lasting happiness, you can cultivate it through the way you spend your time and energy and the people you surround yourself with.” (Diania, 09:25)

She closes by reminding listeners that money is most valuable when it gives us autonomy over our lives, and that happiness might be “a lot less expensive than you think.” (Diania, 09:50)

Key Timestamps

• Problems with FOMO: 00:56–03:29
• What to Do About It: 04:00–07:23
• Notable Quotes and Host Reflection: 09:02–09:50

Takeaways

• Financial FOMO is universal but manageable.
• Appreciation, acceptance, intentional information intake, and avoiding unhealthy comparisons are crucial.
• Personal finance is just that—personal. Celebrate your own wins, however small.

“All roads lead to Rome... Rest well knowing that you'll see everyone at the top.” (Joel, 07:12)